craig melvin: that's all for this edition of dateline. i'm craig melvin. thank you for watching. [theme music playing] "street signs. i'm joumanna bercetche >> and i'm julianna tatelbaum. these are your headlines j the currency pushes lower amid fears negotiators will fail to declare a divorce deal >> the right medicine. shares hit a five-year high after it boosted the guidance after solid demand

>> turkey bank and the lira faulters after prosecutors charge against breaking sanctions. >> and jp morgan shares rally. goldman sach misses forecast as it endures heavy losses after investments in wework and uber >> a very warm welcome to "street signs. it is just over 24 hours now until the make or break eu summit sterling is under pressure amid uncertainty over a last minute brexit deal can be hammered out. talks have just restarted after stretching late into the night french prime minister said there is a glimmer of hope

some members of johnson's conservative party have expressed p doubts about the emerging deal. let's head straight out to willem who joins us live from westminster. break it down for us, which lawmakers matter here? >> you've got boris johnson's party who are very likely to vote for a deal. you have a small number of them who have traditionally voted against the brexit deals one of them has publicly said last night after the group met, the former secretary of state for northern ireland that any deal that involved a border on the irish sea would be unacceptable some seem to be in favor of what they call a tollerable deal. on the labor party side, more than a dozen have talked about a need to get a deal quickly

i was talking just a moment ago saying he thought that number was going to make it incredibly tight because if they vote alongside the government, it will be difficult to try and block this deal. as many of the parties hope to do the other key people are those former conservative lawmakers who were kicked out of the party. unlikely they'll vote against the government the final group is the dup from northern ireland they are relatively on the fence at the moment. after a long meeting with the prime minister, seemed to indicate they would try to vote for a deal if they felt it was in their interest and on v obviously strike a deal when

theresa may struck a deal for the majority just over a year ago. in terms of what this means for saturday, if there is a deal, it could be an incredible will i tight vote whether to put that deal through if they don't, we could see the prime minister forced to ask for an extension, that would be a short one. it seems like it is all about the legal text and they are very close to finding that compromise at last. >> that's right, there is another 24 hours before that summit kicks off what is going to happen today? you mention the various lawmakers and of course dup are clearly in a driver seat here. what could happen in the next 24 hours that could change what happens with the deal? >> what the prime minister has done is call a cabinetmeeting to give officials even more time

before he has to update his colleagues that will be at about 4:00 london time. possibly we'll get clear detail out of that meeting. later on after that, he'll meet with the entirety of the london. tonight, perhaps the clearest sign will be whether the government tables a motion to call for parliament to sit on saturday the first time since 1982 that would happen if we see that tabled late at night tonight, that is a very, very good sign for the government they feel confident a deal has been reached with the commission whether leaders will sign off, another open question. at that point, it would be down to lawmakers here on saturday. >> one important post to be watching out for is tonight and

whether that super saturday sitting does go ahead. willem, beyond that, what about what happens after the dynamics, assuming that a deal does get pushed through are there signs this government will want to push ahead to another general election or is that the backup plan >> of course it is not a majority government. so they then would rely on op owesition lawmakers. it would rely on some labor mps agreeing with him. if he gets a deal through and it looks like brexit does happen on october 31, there is every sign corbins labor party would go through more >> talking about the uk part of

things eu leaders will work to seal a brexit deal. charlotte is working to lead a joint cabinet meeting a day ahead of that crucial summit we've heard of what is going on and what is expected to happen today. can you give us a flavor for this upcoming meeting and what we can expect out of that side in the next 24 hours >> they are doing this joint cabinet meeting once or twice a year where the french or german cabinet meet together. just a day before this summit is quite key. we go to airbus and visit the airbus factory the hq is here this is seen as a great success and seen as a corporation in france and germany that can be

successful they are having a by lateral and a joint cabinet meeting, a dinner and ceos will attend. of course on the official program, they'll talk industrial policy, climate change, defense. no doubt that brexit will be at the heart of the talk. we've heard from the finance minister saying there is a glimmer of hope. this meeting is one of the few meetings macron has had in the past few days. they met already with angela merkel in paris, also donald tusk he spoke to boris johnson and then this meeting today. you will remember mr. macron and mrs. macron haven't always had the same view.

mrs. macron was in favor of a long extension they came an agreement of a short extension. the french have said we are not going to grant another one whether it is a new proposal on the table. all eyes are on this team in brussels negotiating and whether this enough to grant negotiation too to tomorrow. >> you mention the divergence in the past between merkel and macron focusing on president macron, what kind of pressure is he facing in terms of the motivation of him coming into this crucial summit keeping a ma hard line when it comes to these brexit negotiations? >> you could say it is a good

cop, bad cop situation france having a harder line saying, no, we are not going an further. you could say mr. macron is unlikely to block an extension especially if all the other eu partners are in favor. it is difficult to go against all the other partners this french commission candidate was effected they don't want to make more enemies in brussels. it's unlikely to block that. >> thank you for bringing that to us. we'll look out for any commentary on the back of these meetings today let's look at how they are trading. that comes after the significant march higher than we've seen

nearing the 128 level. some doubts around the state negotiation and how the push to get lawmakers on the side. let's bring in the g 10 fx strategist to weigh in on what we've seen when it comes to the pound. what statistic i saw this morning around sterling volatility expectations have risen to the highest level since the brexit vote in 2016 what are you thinking in terms of the outer bounds of sterling here >> when we saw that, it was quite skeptical. there was a discrepancy of what was happening. that optimism and clearly what they see pushing lower is that people are really questioning any kind of deal involves the concession, is that going to be

able to pass parliament. investors are focusing on will there be an extension and really pricing in what the next brexit deadline will be >> in terms of that extension, there is a question around that. is it going to be a short extension or something more substantial? how does that out look for the pound? >> clearly, i think we need an early election if there is an extension, we need to restore some majority. we need to price it in in november, 5th of december. then it comes down to who forms a government is it a government comprised of the dup where you are back in negotiation or a labor government in terms of extension, it is

usual usually a 90-day extension so you are looking into april or june next year >> we are looking at that uncertainty extension or we actually see the deal passing in the next couple of days. if that does happen and they managed to get that through, where do you see that pound going? >> that upside potential is there. we saw the aggressiveness of the move markets are at right short we don't think enough was priced in definitely, you could see sterling back towards 135, 140 levels saying, we are not approaching anywhere near 150. that obviously rallied versus a dollar now we are at 127, does that suggest the positioning is a little more neutral now?

>> definitely right, there has been a squeeze and a rule that markets are still in that short. we do get the deal that passes the uk parliament for more >> we'll leave it there and pick up the conversation in the next chat on the topic of brexit, we are getting comments saying we will talk with the government to discuss the plan he says they will remain firm allies but do not vote the same way. i hope erg will be able to approve the deal but not there yet. this ties in to what our colleague was watching in for us very hard line pro-brexit and what would have been called the prospar tans one challenge would have been to get the group on board to vote with the deal.

this language is indeed quite endorsing at this point. he said they will have meetings with the government and they won't vote the same way. so providing a little bit of hope there at least that part may vote in line with the general government so a lot of developments with the uk clearly having the impact. that uk market as a whole. a little more negative compared to the price action we had yesterday. in germany down about a 10th a percentage point ftse, we are seeing the index dip a little bit some of the names and sectors that did well yesterday, the uk domestic banks, home builders reversing their gains in line with other cautiousness.

the ftse mib on the back foot the approval that their budget will he about send for approval there. a couple of months ago, that was in focus but let's not forget about the dynamics of the italian market >> roche with q 3 sales in part due to strong demand for its multiple sclerosis medicine. in the bid to take over spark therapeutics this year you can see they are up there. coming up on the show, u.s. vice president is set to travel to turkey.

more after the break

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>> welcome back to "street

signs. turkey's main market and lira have fallen after u.s. charges of a multimillion dollar scheme to avoid sanctions halkbank was not available for comment. still trading firmer to the tune of about .3 percentage point reaction has been one of strength to the sanctions. we discuss this with dan yesterday still in is stan bull. the vice president of the u.s. is paying a visit. >> reporter: that's right. the vice president is expectinged to touch down. he's coming in with a senior delegation of u.s. officials including the u.s. secretary of

state mike pompeo, advisor and ambassador their goal is to encourage the turkey president to enact an immediate cease-fire and lay down a framework for negotiations into the future interestingly, when this one on one meeting takes place, vice president pence is coming with a president to trump he will pass on >> we want to bring our soldiers back home. we are being very tough on turkey and others. they have to maintain their own properties now and peace and safety we put the strongest sanctions you could imagine. we have a lot in store if they don't have an impact including massive tariffs on steel

they ship a lot of steel to the united states. they make a lot of money shipping steel >> reporter: the united states announced yesterday a 50% steel tariff and an end to the $100 million trade deal including the defense minister, energy minister and interior minister experts say these will negati negligable impact. let's watch and see what happens as this meeting gets under way back to you. >> thank you for the latest. the imf has cut its global forecast to the lowest level since financial crisis siting trade tensions expecting the gdp to go down this year from the july forecast growth is expected to come up in

2020 risks remain skewed to the down side i see you are still bullish the u.s. dollar. what is going to be different that will start weighing on the green back in 2020 >> we think one of those underpinning forces for the dollar is that growth differential we think when it comes to 2020, that will get a global pick up outside the u.s. we are optimistic on a u.s./china deal and the stimulus also the ability of the u.s. reserve which is a lot more ammunition to cut rates and support will be one of the factors on the dollar. >> those are precisely the

reason the central banks around the globe have become more cautious we'll see more stimulus in the way of the trade front >> we have seen this development. there is so many bones of contention in the u.s./china relationship when it comes to ip and issues we are thinking that does outline a basis of truth really crucial, we think in the fourth quarter, they will come through with the stimulus to support that economy there and a whole asia >> on one hand, you talk about the possibility of a trade deal and the other hand, room that the fed have to cut interest rates. the reason why the u.s. economy has been slowing down is on the back of the exposure to the

trade ward if there is a resolution there, this enit takes the pressure of the fed. >> the u.s. economy has been in a very long extension now. the u.s. economy is actually quite insulated. we are thinking it is a very clear picture of a maturing cycle. we are seeing services and those ism pmis falling weaker. suggesting the low down employment that has so far supported the u.s. story >> something many others are referring to we'll talk about that a little later. key to watch the economics here. >> the g 10 strategist talking

through her views on the pound and the dollar as we head into next year. coming up on the show as well, interrupting the latest from chief executive carrie lam more after the break

>> these are your morning headlines. brexit crunch line the currency pushes lower amid fears negotiators will fail to agree to a divorce deal. >> wall street kicks off earnings season. goldman sach misses forecasts. >> turkey's banking index sinks dragging on the main stock market and the lira faulters after they are charged with

breaking sanctions >> overcoming the blacklist. seeming to shrug off head wins from u.s. trade restrictions >> it has been a busy morning for the uk headlines less of a focus this morning still important to look at the cpi data we have the rpi measure coming in at 2.4% slightly below the poll actually the lowest year-on year rate coming in at x 2.4% we have the all goods come in 1%, the lowest since 2016. the year and year basis 1.7%

year and year again a miss versus the expectation of 1.8%, the lowest since 2016. a miss on the headline let's take a look at how sterling is reacting in general. investors turn cautious ahead of the commission whether they will push through in the last 20 minutes or so, we had comments from erg saying they will have discussions this afternoon about the brexit deal and that they won't have a deal. lending the opt mission that they won't sign onto the hard agreement. that's one reason you have seen sterling tick up ftse 100 is at a low now

earlier on, we saw some gains with the weaker pound. some of the export stocks now coming under pressure. we are in negative territory about .3 a percentage point. ftse mib hanging in around the flat line this morning let's look at where things stand for the u.s. market. in for a muted but negative start. yesterday, we saw gains across the three as investors really shrugged off the down grade. health care had the best day of the year, consumer staples was the worst. bank stocks in focus with he saw yp morgan shares rally strong yesterday after that lendersmashed through goldman sach missedents and keeping an eye on the rest of

the banks. let's look at asian markets where trading was fairly mixed the chinese markets trading lower. out performing 1.2%. in hong kong, the hang seng ended up 0.6% despite the controversy of the chinese territory. carrie lam has been forced to deliver her address by video avila makers and council interrupted the speech twice emily filed this report from hong kong. >> reporter: delivering her annual policy address by preordered video the move was part of the plan should protests disrupt delivery the message lasted 50 minutes and started off by acknowledging the more than four months of unrest she planned to present the

policy as planned. housing was a main focus she said housing is the toughest livelihood issue and a source of public grievance she set a clear objective that every citizen and his family would no longer have to be troubled with this problem and would be able to have their own home promising more affordable housing for citizens and that protests would slow demans social unrest leading to a technical recession. >> they have aggravated a situation, posing a challenge for the economy. they have shared the reductions of retails continue to decline of exports as well as businesses, investment and consumption sentiments since businesses have recorded the

worst business ever. >> lam also expects the labor market to experience pressure in the short term unable to deliver the policy address as planned due to protests carrie lam is due to reappear tomorrow for a question and answer question. we'll watch if proceedings will go on without a hitch. back to you. >> protests have entered a second night in catalonia leaders will face 13 years in prison for their roles coming amid a key general election in spain. the catalonia president said political uncertainty in spain could impact europe's third

largest economy. >> it is in the same position that it is doing nothing during the last five or six or ten years, we've always tried to put alternatives on the table just to try to find the solution we want to build the resolve wants to recognition catalonia to sit together and talk and to put our questions and our solutions on the table and start to discuss of course we are going to put on the table a referendum we still don't know what is the proposal of spain. this is urgent now >> catalonia is not the biggest

problem europe faces now talks between uk and eu have just restarted as sterling weighs the possibility of a brexit deal. mp told us they are inching toward an agreement. >> indeed colleagues that have been concerned about the constant delay is that this is very different it requires a few extra days the norman dy landings were delayed. apollo was delayed the same should apply here five to ten years, people won't look back and say my goodness, they didn't honor that 31st

deadline they will punish us choosing no deal and our economy goes where everyone predicts it will go >> that was one voice. >> the numbers are going to be very, very tight either way. given that there are very many different interests in this. i hope it won't pass because it will be bad for britain's economy. if it does pass, i hope it does pass with the proadvisor of the referendum of the people >> absolute crunch time. home builders are in focus yesterday, we saw a bounce today, stocks are coming under pressure bovis is down 1.8%

a lot of that optimism is being expressed. >> our next guest says the uk is forcing investors to contend with undue revenue while dublin could benefit for a demand for office space joining us now is global head of real estate. in terms of this shift out of london and into other places in europe give us detail in terms of the time frame and the scale we could see. >> or has it already happened? >> i think what we are seeing here is the issue investors are facing in property can differ depending on one's time horizon.

we work with a lot of institutional money managers if you are a pension plan that has to pay out liabilities to teachers, police and fire, the answer can be very, very different. there is a lot of sectors that can be impacted. they go back to the outcome that they are seeking or it can vary in terms of investor's goals >> there seems to be a deal out there that all of this animal spirit will be unleashed do you see that? do you see that demand on the sideline so money can come pouring back in? >> we are seeing brexit is real.

trade wars as well these are factors they need to consider >> i am in the midst of a four-week trip now we are finding other factors are what investors are focusing on. these are real if you are investing hundreds of millions of pounds into portfolio profits, you need to understand am i involved in flood risk what we are finding is, yes, everyone is cautious many of them are worried about the outcome. whether it is diverse economies. in the case of real estate, we do this across the multitude of

classes, real estate is always going to remain a lot of transactions, that balance is really where a lot of those are looking to help. >> just rounding out the discussion, among its institutional investor base, have you noticed a shift around this brexit saga >> what is happening is that a lot of the investors would exercise the caution the types of clients we work with are the types of clients we are working with and how it fits into a particular asset class. needing to look at real estate and the fixed interest in the like

>> another topic we talk about is this low interest rate environment. it is considered to be some what fixed income like and you get a regular income stream. has that enticed new investors >> it does those large institutions that need to find yield somewhere that rate environment, we are finding the increased allocation because that asset class has been inconsistent. i would suggest it might be the most radical transformation going on now, which is the need forgetting data or either to help determine that future allocation and ones they've

already made those discussing across asset classes for a while in the show now. where are we in terms of a shift? >> it has been interesting it was more of a slow burn with real estate, it is becoming part of the investment process, the risk factor. maybe as simple as you can see the building there are a lot of regulations under way right now. not just because of individuals. clients need to understand what is my carbon foot print. you need to understand these things if you are a canadian pension plan, they are asking us, we need to understand this footprint whether on the london stock exchange or a property in the city of london >> thank you for the detail

there. if you want to get involved in the conversation, you can tweet us at street signs or @cnbc julianna. we've discussed a lot already. brexit is squarely the focus >> we'll take a short break. coming up, earnings season kicks into a higher gear we'll give you a round up of wall streets reaction after the break. i wanna keep doing what i love,

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>> welcome back. politics are front and center on both sides elizabeth warren took the most heat fielding criticism over taxes and health care. >> costs are going to go up for the wealthy and big corporations they will not go up for middle class families and i will not size a bill into law that raises their costs.

costs are what people care about. >> rival candidate and former vice president joe biden came out swinging as he addressed the allegations about his son hunter >> rudy giuliani, the president and his thugs have already proven they are in fact flat lying. what we have to do now is focus on donald trump. he doesn't want me to be the kajd date. he's going after me. he knows if i get the nomination, i will beat him like a drum we also got comments a couple of minutes ago from carrie lam saying the u.s. passing of democracy act is unjust i tied

that is the story that the two sides have tried to keep some what contained now we are hearing carrie lam saying this u.s. democracy act will hurt business >> so many different realms and even the culture with the nba getting tied up in the mix huawei saw a surge offsetting concerns after it became embroiled in the u.s./china trade war saying it shipped 100 million smartphones. a strong network demand helped asml that also sited new

technologies saying 2019 would continue to be a, quote, growth year. in the banks space, tuesday's gains were driven by a strong start. jp morgan and more show a strain on the profits however goldman and others missed estimates firing this report >> numerous earnings course showed despite the numbers declining across the board but net income showed a decline. fixed income commodities supported the overall trading revenue thanks to a strong september. goldman sach recovered they

showed to be the underperformer suffering an $80 million write down due to their investment in wework their vest revenue was soft thoe they suggested the pipelines were strong jp morgan led the pack their 8% revenue growth stood out. jamie diamond was more cautious. citi's ceo was reminiscent of how the market turned. >> consumer is in fine shape we saw the imf come out this morning. i would describe that as more of a catch up than where any of us had been

3% global growth not as high as we'd like it to be but it is still global growth >> on wednesday, morgan stanley on thursday. wilbur frost, cnbc news. >> what i think it interesting, while investment banking was fairly uneven, the consumer seems to be holding up one line that stood out to me. the u.s. consumer is in excellent shape. that has been a key pillar of strength for the u.s. economy. >> if you break it down even further. customer card purchases grew 7% at citi. loan balances also by 5% also the reason why it wasn't as anticipated. the yield curve inverted

the banks that are sensitive to that felt it they had the gearing towards the lower interest rate environment. the consumer activity seems to be supportive. that question i found myself asking, is this a sign of things to come in the future in that banks that have a focus are going to be the relative out performers away from the traditional model in the past. those markets were the leaders in the space >> certainly what we've seen in the ipo space certainly at this point, it would appear those banks with heavier detail are best placed. >> goldman as a whole sit $267 million. $80 million alone with wework

and the uber as well because they had positioned themselves in that space. you have to think is this seasonal or one bad quarter or will goldman have to start changing their business model. >> pushing on earnings season continues with bank of america, nbny and mel lone to report. posting q 3 numbers on thursday and state street caps off the week our colleague will speak exclusively to goldman sachs ceo at 20:00 cet facebook's libra project is under pressure our very own elizabeth will speak to facebook's david marcus will speak to a panel.

the bank of england governor will also be on stage at 16:00 cet. >> investors will be trading sterling we have a picture toward the pound that has been a bit of a roller coaster ride. trading slightly weaker. at one point down about .5 percentage points. a lot to watch out for that's it for our show >> "worldwide exchange" is up next here, it all starts with a simple...

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it is 5:00 a.m. at cnbc global headquarters. one and done wall street giving back some of yesterday's massive gains. the trade war, back on with china issues a threat to washington over unrest in hong kong new developments overnight in turkey as vice president mike pence travels to that region today. a $600 million mistake could rise t